Breaking News - Networking:
Cisco Maintains Strong Lead In Enterprise Router Market
Worldwide enterprise router units shipments increased 10 percent and revenue
totaled $918 million in 3Q04, down a percent from 2Q04, according to
Infonetics Research's Enterprise Routers quarterly worldwide market share and
forecast report. Revenue is projected to dip 4 percent to $3.8 billion between
2003 and 2004, and return to the 2003 level of $3.9 billion in 2007, with a
5-year CAGR of -1 percent.
"Cisco continues to dominate the router world quarter over quarter," said
Infonetics Research's Matthias Machowinski, directing analyst for enterprise
voice and data. "The competition is introducing products up and down the
enterprise router categories, offering end-users more choices and features at
aggressive prices. Cisco faces the most competition in the low-end/SOHO
categories, pressured by the commoditization of low-end routing and more sales
channels."
Infonetics projects secure router categories to have slightly higher growth
rates than standard router categories through 2007, increasing revenue from a
12 percent portion of the total router market in 2003 to 14 percent in 2007.
Over time, more router vendors are likely to add security features into
routers as a default offering, at no extra charge, causing the standard
enterprise router category to disappear.
3Q04 Market Share Highlights
- Cisco maintains its strong lead in the total enterprise router market,
despite a down quarter, accounting for three-quarters of the worldwide revenue
share and almost a fifth of the unit market share.
- D-Link takes the lead in unit market share; Linksys is close behind, and is
second for revenue.
- NETGEAR is in fourth place for worldwide unit shipments.
- 48 percent of enterprise router revenue comes from high-end routers, 39
percent from mid-range, 3 percent from low-end/SOHO, and 10 percent from wired
broadband gateways.
- 46 percent of all enterprise router revenue comes from North America, 32
percent from EMEA, 17 percent from Asia Pacific, and 5 percent from CALA.
Enterprise Routers tracks wired broadband gateways and standard and secure
high-end, mid-range, and low-end/SOHO routers. Forecasts and market share are
updated quarterly and cover all regions (worldwide, North America, EMEA, Asia
Pacific and CALA).
Companies tracked in this service include 3Com, ADTRAN, Allied Telesyn, Cisco,
D-Link, Enterasys, Huawei, Juniper, Linksys, Lucent, NETGEAR, Nortel, Siemens,
Tasman, Vanguard and others.
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